Home Insurance Coverage
Learn what makes a full and complete coverage for your home.
Simplifying Home Insurance Coverage
Liability Coverage
Liability coverage is the foundation of all property insurance coverages. It financially protects you in the event of a lawsuit.
Dwelling Coverage
Dwelling coverage is coverage for the physical structure of your home. It covers the cost to rebuild your home in a loss.
Contents Coverage
Contents coverage covers the costs to replace your personal belongings. Some items have special limits on the amount of replacement cost.
Outbuilding Coverage
Outbuildings are similar to dwelling coverage, but it instead covers the structures that are not attached to your house (detached garages, sheds, etc.)
Extra Coverage
Most home insurance providers will have additional add-ons for your insurance coverage. These are the extra perks that insurance companies provide to round out your protection.
Liability coverage is the most basic form of property insurance coverage. In its most basic definition, it financially protects you in the event of a lawsuit. Liability coverage extends to you, your immediate household members, and even your pets. In most cases, your homes liability protection extends all across the world.
Liability coverage financially protects you if you, or your property causes bodily injury or property damage. If your icy walkway causes a guest to slip and hurt themselves, your property liability protection would cover the damages. If your toddler knocks over a guests DSLR camera and smashes it, your property liability protection would cover the damages.
How Much Liability Coverage Do I Need?
At Tango, we offer a $2 million liability minimum. In our professional experience, the cost of legal settlements can exceed $1 million relatively quickly. If you were to only have $1 million in liability coverage and had a settlement of $1.5 million against you, the insurance company would pay the first $1 million and you would be personally responsible for the other $500,000.
If you are someone that owns multiple properties, travels frequently, volunteers in the community, or owns a business, you may want to talk to your broker about addition Umbrella Insurance to enhance your liability protection.
Dwelling coverage is the coverage that covers the physical structure of your home. Note that it does not cover the land cost of the home. Good dwelling coverage will take into account the market conditions for labour and materials to rebuild the home in its entirety. At Tango Insurance, we automatically review your homes dwelling value at every policy term with a specialized insurance software that can track increases in costs. You stay fully covered without all of the hassle.
If you’ve built an addition or done major renovations to your home, it is a good idea to call your insurance broker to ensure they can account for the added value to your homes dwelling and add coverage accordingly.
Dwelling coverage covers the cost to reconstruct which will include permanent home appliances like a water heater or furnace. Removable home appliances like the ones in your kitchen are a part of your homes contents coverage. If you’re renting your home, talk to your insurance broker about the necessary contents and dwelling coverage.
Contents coverage is the portion of the policy that protects the personal belongings inside the home. This can include:
- Removable appliances (refrigerator, toaster oven, etc.)
- Furniture (television stands, mattresses, etc.)
- Electronics (cell phones, cameras, televisions, etc.)
- Contents of an attached garage (tools, lawn mowers, snow blowers)
- Other personal property
Covered events can include fire, theft, vandalism, water damage, natural disaster, or other circumstances.
Contents coverage does extend outside of the home. If you have expensive personal belongings in a vehicle and they are stolen, it is your property insurance that covers the cost to replace them and not your auto insurance.
Are There Limits On My Contents Coverage?
Yes, most insurance companies have special limits on specific items. While every insurance company is different, some items with special limits include coins, jewelry, utility trailers, musical instruments, luggage, bicycles, sporting equipment, boats and others. If you have any high value items or collections, talk to your insurance broker about scheduling those items. By scheduling an item you insure that item for its full value, get a separate (typically) smaller deductible, and more thorough coverage that includes mysterious disappearance. A commonly scheduled item is hearing aids.
If you are storing project vehicles, motorcycles, boats, holiday trailers, or other vehicles in an attached garage, they will need their own insurance policy or a specialized coverage through the property policy to be covered in the event of a total loss.
Outbuildings are other physical structures on your property that aren’t directly attached to your home. This can include, but is not limited to:
- Detached garages/Shops/Sheds (including their contents)
- Pool house/Recreational structures (including their contents)
- Fences
- Decks
- Playgrounds
How Much Outbuilding Coverage Do I Have?
Outbuilding coverage is usually calculated at a percentage of the estimated replacement cost of the property. It does vary by company, but it will usually be between 8%-15% of the homes dwelling cost.
The standard 8%-15% coverage for outbuildings is typically included in your annual premium and does not cost extra. You can get supplemental coverage for outbuildings with only a small premium increase. If you install a new deck, fence, or shed, it’s a good idea to talk to your agent or broker to ensure you have sufficient coverage for your structures.
Your home insurance policy comes with great extra coverage options to round out your coverage.
Identity Theft Coverage
The average cost of identity theft is around $1,100, but it often involves significant time, legal challenges, credit damage, and emotional distress. In Canada, identity theft incidents have surged by 809% from 2010 to 2020. Identity theft protection is available through home insurance policies, covering legal fees, identity restoration, and more, costing $50-$150 per year. Insurance companies offer different levels of protection, it is a good idea to review your coverage with your broker.
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